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Intel's CEO says its costly tablet chip strategy has paid off

reuters.com

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Re: Intel's CEO says its costly tablet chip strategy has paid off

#2
I think he meant "Intel paid off a lot of Chinese manufacturer to make them start using Atoms", and it only cost them $2B so far.

http://www.extremetech.com/extreme/186367-intels-mobile-divi...

http://www.kitguru.net/components/cpu/anton-shilov/intel-sel...

Their biggest success is some fly by nights nonames announcing one off $65 tablets.

Re: Intel's CEO says its costly tablet chip strategy has paid off

#3
post #2

I think he meant "Intel paid off a lot of Chinese manufacturer to make them start using Atoms", and it only cost them $2B so far. http://www.extremetech.com/extreme/186367-intels-mobile-divi... http://www.kitguru.net/components/cpu/anton-shilov/intel-sel... Their biggest success is some fly by nights nonames announcing one off $65 tablets.

>> Their biggest success is some fly by nights nonames announcing one off $65 tablets.

How about the Dell Venue 8 Pro?

Re: Intel's CEO says its costly tablet chip strategy has paid off

#5

"its costly tablet chip strategy paid off" ... > "the company's mobile and communications group's second-quarter revenue fell 83 percent to $51 million, and the unit had an operating loss of $1.12 billion"

He is saying it payed off in terms of market share, not income.

Re: Intel's CEO says its costly tablet chip strategy has paid off

#6

"its costly tablet chip strategy paid off" ... > "the company's mobile and communications group's second-quarter revenue fell 83 percent to $51 million, and the unit had an operating loss of $1.12 billion"

Revenue fell because they're paying for market share.

"Krzanich set a goal for Intel's chips to be used in 40 million tablets in 2014, up from 10 million the previous year."

They're pretty clear in the article that by "paid off" they're referring to the market share they're buying. Intel is attempting to force its way into the market, leveraging its wildly profitable traditional processor division and $17 billion in cash. With $10.2b in net income the last four quarters, it makes perfect sense to vaporize a few billion dollars if necessary to grab a piece of the mobile market and build forward.

Re: Intel's CEO says its costly tablet chip strategy has paid off

#8

"its costly tablet chip strategy paid off" ... > "the company's mobile and communications group's second-quarter revenue fell 83 percent to $51 million, and the unit had an operating loss of $1.12 billion"

Bingo. That's the money quote. If you hadn't posted it first, I was going to. They're spending/subsidizing nearly $22 for each $1 of revenue.

Intel is taking lessons from Microsoft in how to waste billions of dollars in futile endeavors.

Re: Intel's CEO says its costly tablet chip strategy has paid off

#9

Intel has a horrible horrible architecture, I really dont want to see it win over ARM Architecture which is open and superior, and wastes a lot less DIE area just for instructions that Intel Does.

I wouldn't call ARM open. Sure, you might be able to negotiate a license to one of ARM's designs. You need an architectural license to do your own implementation though.

Re: Intel's CEO says its costly tablet chip strategy has paid off

#10

Intel has a horrible horrible architecture, I really dont want to see it win over ARM Architecture which is open and superior, and wastes a lot less DIE area just for instructions that Intel Does.

Shouldn't we care about efficiency and end result, rather than die space?
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